Friday, 13 March 2015 10:01
SINGAPORE: LME copper is expected to test a resistance at $ 5,960 per tonne, a break above which will lead to a further gain to $ 6,040.
It seems a double-bottom has formed around a support at $ 5,723, the 38.2 percent Fibonacci retracement on the rise from the Jan. 26 low of $ 5,339.50 to the March 2 high of $ 5,960.
This pattern has been confirmed as its neckline at $ 5,869 was broken, pointing a target at $ 6,040. However, this target could only be available when copper breaks above $ 5,960.
Support is at $ 5,869, the 14.6 percent level, a break below which could lead to a further loss to $ 5,814, the 23.6 percent level.
Copyright Reuters, 2015
